zoo, not able to sleep later. there is the dow a good day, up 100 points. we will get context and perspective from neil cavuto. see you tonight at 7:00 eastern on the fox report. >>neil: after a weekend in washington, dc showing you the fiscal cliff along comes paul ryan with a plan to lead us off the edge. coincidence? we report it looked like romney and ryan have decided the train wreck coming doesn't have to happen not if they get elected. and a mandate with that to get serious tax reform done in a bipartisan budget blueprint. ryan is sketchy only the details but could get washington moving

the first sign that the republican ticket has talked about what they will do before coming to power, putting pressure on a lame duck session of congress. to read the political tea leaves and brew a budget deal that would avoid the financial panic we spelled out in washington this weekend. ahead of tomorrow's debate, yours truly may have just saved member as we know it. enough about me on to the ideas talked about because of me, on the makings of the deals to derail a disaster. what do you make of what obviously is a confident republican ticket planning ahead of inauguration?

>> there are so many moving parts it is hard to sort them out. i do believe if romney wins this election, he will have a mandate to make all of the bush tax cuts permanent, not just the ones for the middle-class so i think that will happen and i think it is possibly likely to happen in the lame duck session they will pass a tax deal that extends those tax cuts for at least another couple of years. the bigger issue, the tougher thing to figure out, what do they do about the giant entitlements that are driving the budget deficit and what do we do about tax reform? can they come together in a bipartisan fashion which has not happened, and come to agreement to lower tax rates and bradden -- broaden the base. >>neil: you are talking if the republican ticket wins. now i spoke with the likes of

pat buchanan and grover norquist, they have the argue they would be emboldened in a lame duck session to follow the will of the people. how true is that? what does history suggest happens with a lame duck session after a vote? >>guest: well, go back to years ago, after the historic republican mid-term election, president obama caved on the tax, those tax cuts that supposed to expire and they extended them if two years which is why we have the debate now. >>neil: the argument for that, for extending them at time, to save political face, but the economy was too weak to raise taxes on anyone, and we are weaker, now, than we were this. >>guest: well, you took the words from my mouth, the economy is growing at a slower rate now than at the end of 2010 so there will be a powerful impetus to do

this but it depends on mitt romney winning. >>neil: does it have anything to do with republicans winning the senate? >>guest: if mitt romney wins this race, he will have a republican senate and if president obama wins the race he will have a democratic senate. what i was going to say i harken back to what happened in 1986. i believe that is the model for making a big thing happen. amazingly, think of this, in 1986 when ronald reagan put on tax reform on the table, you had a bill that cut the top income tax rate down to 28 percent, it got rid of the special interest loopholes and here is the amazing part, that bill passed the united states senate 97-3. that is bipartisanship. call me optimist but i think there is the opportunity to get that deal. >>neil: conservatives were critical of ronald reagan for giving away allowances and

breaks. but he did so to get a deal. that was called "negotiating." >>guest: in the end it was a great deal. the only problem was what has happened in the subsequent 25 years we keep adding to the tax code all o the garbage and all of the termites that are destroying the tax system. i like the idea of a reform and i would not, i do think there is a chance we could get entitlement reform which is harder than the tax reform. >>neil: i think you are right, steve. thank you very much. >>guest: optimistic today. >>neil: call it a demand for apple's iphone with sales chiling more than 1 percent, with the launch of the new iphone 5 fueling that increase because electronics-related sales surged 4.5 percent but high gas prices pushed the sales

higher. is this economy really strengthening? my guest is not buying it. this is more gas stuff than iphone? >>guest: the headline looks promising but you look at the details you will see the jump was driven by the help phone sales and by rising gas prices. so, apple sold five million iphone 5's the first week translating to $1 billion in sales. >>neil: what does that say about our recovery? >>guest: not were. if you scratch a little further the numbers will be more depressed. gas sales account for 4 percent of total reseem sales and when consumers spent more at the pump and the grocery store which gets affected by rising gas prices, it doesn't necessarily noon you have a more healthy consumer but they are shelling out money for every day things. >>neil: you are right on the

technical aspects and we talk about low unemployment rate, but if you are president obama tomorrow night in this townhall for recommend, you will say the trend is your friend? look at job gains, they are picking up, and i'm the guy with the wind at my back not the other guy. >>guest: you are seeing this in every area where you idea data and numbers to show. you are trying to find a story that supports what you are trying to say and it is what we are seeing. >>neil: both can claim it supports their argument? >>guest: i will support our side and tell you that if you actually look at the raw sales data you will find that the story is depressing, we lose $31 billion in retail sales in september. >>neil: but the administration's view believes this because all the aberrations notwithstanding, things are getting better and it is no longer a free fall. >>guest: things are not getting better, the

unmanipulated data shows a story you will not like. >>neil: thank you, monica. the numbers behind the numbers. >> they like us, 51 percent of likely voters view mitt romney favorably up from 47 percent. with the governor's likability up and the economy also showing signs of looking up, how is all of this going to impact the race on the eve of the second presidential debate? david, what do you make of this? how big a factor will it be? >>guest: the likability numbers, romney had to improve the likability in that debate. he succeeded. he also beat obama badly and made him look bad. so, it is important that romney succeed on that score and it has made a big difference so far in

all the swing states. he is tied with obama and possibly leading nationally. all the key swing states are moving in his direction but he trails in ohio. a game changer --. >>neil: this just out, swing state voters where he has added to the lead. this is unusual in that now the post debate performance which many could be calling it short lived is not short-lived. >>guest: there are a couple of ways to look at the debate. one is to look at romney getting a bounce. that is the wrong way did look at it this debate was more like the thing that gets in your windshield for president obama, it spreads when the car hit as bump and the crack widens, and grows bigger and then the windshield shatter. the debate shows that romney is

not the definite -- devil and he came to this debate with a punch of canned talking point, president obama did, and romney just flood explain why he was wrong and everyone not he was a unionious so obama looks bad compared to romney who was a gaffe machine, frankly. >>neil: but from the cater -- carter folks say if we had another debate of at the debate between carter and ronald reagan where carter failed to make reagan look evil, he came across as likable and we know what happened, but president obama has two more chances to rerecalibrate. will he? >>guest: he could. i just add probably fewer people going to watch the last two debates than the first one and, also, you never get a secretary chance to make a first impression so romney made the

first impression with an audience of over 70 million people and obama, people know who obama is, they sought performance, and they are starting to lean toward romney, the undecided are, and that is bad for oh because. he would really have to have a phenomenal recovery and romney, for the debates to matter at least, there are other things that could swing the election, but romney would have a tell debate, one of the next two or maybe both. >>neil: all right, david, always a pleasure, thank you. you have had a chance to see this? felix baumgartner plunging to earth at 833 miles per hour before he activated his parachute at 48 seconds. you think that fast? wait until you see other coverage of the presidential debate on fox business network at 8:00 p.m. as we bring you reaction at lightning speed from the likes of louisiana governor

jindal, and former debt commissioner co-chairman and montana's democratic governor and many more, simultaneous reaction from the markets abroad, our own futures market here and something new with an online poll where you can vote and the results will be shown here throughout the night and we will be tweeting and any of the stuff that is in vogue, you tell us, we will tell the world first and here on fox business network. to the libya coverup. not here. here. [ male announcer ] how do you make america's favorite recipes?

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>>neil: all the focus on talk on sunday, but not a headline for monday. why is that? the white house's alleged coverup on the libya attack all over the weekend shows. all the weekend shows. without not know it reading the front pages of the major newspapers even at the fiery libya hearing on wednesday. my guest is not surprised. this is fairly blatant. i thought for sure we would see a lot of follow-up just for the sizzle factor. >>guest: you would think the media would want to redeem themselves because of how appallingly obvious it was last week the fact that "new york times" buried the story of the libya hearing last week and i thought last week the shock and awe over the fact by the many

stream media there were no protests, nothing, viewed as a coverup, this is something that fox reported on september 17. but there was astonishment there were no protests revealing an incredible laziness on the part of the media taking verbatim what the administration is saying showing they are complicity in a massive coverup by the administration to avoid a political fallout before the election. it is iron evening they are accusing republicans of being political for having hearings to get to the bottom what happened after the crazy stories that have been coming out from different parts of the administration. they accuse the republicans of that when the politics are coming from the white house the administration and --. >>neil: but it is obvious that a blind eye is another but the night of the vice presidential debate the biggest doozy was biden saying he was not aware of

any warnings directed at the administration on any terror threats or growing security concerns from benghazi. at least that indicated the vice president was lying or at best, he was too unimportant to have this related and here is our mideast top security guy and the point man for the president, yet, not a peep in the media and that stood out. >> right, right. partly what joe biden said, which was obviously a whopper, but the white house coverup of what he said when the white house first of all said he was just talking about himself and suddenly --. >>neil: but we had the security briefing and security supporters were saying that was it and the debate was, who did they say it too? >>guest: neil, this is a profound unmistakable coverup and the fact that the media is completely ignoreing it and

leaving it to fox news and conservative media to bring out the details and cnn got some truth, but by finding the ambassador's diary, but there is about to explode. we are finding out today that actually we knew this early, but no one is reporting it, the fact that classified information was taken by the terrorists and they now are having the key folks exposed over there in libya who have been helping the united states and they will be knocked off. that had something to do with the assassination of the security officer but this is only going to snowball. we have the white house throwing hillary clinton under the bus which i guarantee will not go well. >>neil: if you are going after george bush on what he knew and when then it is fair game here. thank you very much. good to see you. >> the president praising the auto bailout but in michigan it

is mitt romney, the guy opposed to the bailout who is closing in. could the state's republican governor be the reason? he is next. endless shrimp is our most popular promotion at red lobster. the's so many choices, the guests lovet! [ male announcer ] don't miss endless shrimp, just $14.99! try as much as y like, anyway you like. like new teriyaki grilled shrimp. offer ends soon! my name is angela trapp, and i sea food differently.

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>>neil: the rating agencies have been saying we are thinking the united states is a joke. they not targeting one party over the another or blaming the guy in this building behind me. but he is still at home. we planned to stop by for a cup coffee but we will stay here in washington, dc, outside the white house, probably pop over to the president for a little latte. >> in the belly of the beast, the president did not invite me. i went to washington, dc to see

for myself what they are doing about the fiscal cliff and they are not doing anything at all which is why we took this show on the road remind a nation obsessed on an election what we cannot avoid in the weeks that follow, trillions in tax cuts that end the very same stroke of midnight on the new year that millions in spending cuts kick in from across the white house hoping the reality of all of this sinks in there, we have someone writing "the first time you said you would go to see president obama and have coffee i could just see him rushing to pack his bags. the second time you said it i could see the president calling ahead not pilot to start the engine as he is running through the door." and from florida, "your saturday show was filled with enlightenment, if anyone who watched it did not catch on, they had to be asleep." and from montana, you are honest, and straightforward about america's future." and another from texas, you are

a super hero, come to our rescue even though next time when you do swoop in, get a nicer coat, the one you wore on saturday was atrocious. >> super heroes have no time for cosmetics. >> another from arizona, said your annoying style of interrupting, it is bushily. >> sorry, i am a have hero and in a have rush for answers why is sometime to sit through long talking point even in a two hour show. and another appreciates my rushed mission. you are right. keep saying it. you speak if those who do not have a voice. you do now, sandra, you do now. and another e-mails, you are right we must cut the size of government if a big way. and another, embarrass the elected officials that is the only thing they react to. you have the bully pulpit.

and another writes, you can throw all the doom and glad you want but what i have learned about such predictions is thatting in is ever as you guys, politicians and the news meatia say. >> you right, jerry, it is worse this time at the rate of $4 million added each day it is getting much worse. >> and another writes i heard there is a million muppet march to keep subsidies for big bird. big bird is 43, while my kids are in the 20's, it is high time to leave the taxpayer nest. >> and another great yahoo, you don't look like superman, your head is bigger than superman, i suspect everything about you is bigger than superman. >> but that only makes you more to love and more to listen to. next time, keep the tights at home.

>> the nation looking for a solution, not politics as urge to republican senator, a republican from wyoming, is trying to find them but time is running out. >>guest: thanks for having me. we need to get this spending under control. >>neil: what are you waiting for? the election? so if it goes your way? >>guest: there is going to be a presidential debate tomorrow. we will hear two very different views of america. we have mitt romney who has cut taxes on hard working families 19 times as governor of massachusetts. and president obama who continues to raise taxes 21 times and schumer accident. >>neil: but he will make the pitch tonight night that --. >>guest: the president is rock. people are not hiring. we need to get people back to

work. we want people to get back to work so they pay taxes when they work. we have 23 million people look for work who are unemployed or under employed. salaries have dropped by 4,500. >>neil: all this stuff hits the fan how do you address that? what is the guess to correct it? >>guest: we need to elect mitt romney and for the next year while we are working on tax reform, do not raise taxes on anyone, provide some certainty so people get hired, and that is the best way the you still need to cut the spending as part of the sequester. >>neil: extend everything including delaying the cuts. >>guest: put a moratorium --. >>neil: but the markets, keep an eye on them and they are punting. >>guest: you need tax reform in a way that actually has more people working. that lowers the rates on everyone. i have an editorial how the

united states double taxes companies who do business overseas. $1.7 trillion sitting overseas. >>neil: no doubt, no doubt. you think the incentive is there for your part of the bargain is we are going to push everyone forward another year and we promise you we are going to work on a simpler tax system in the new year and everything is going to be good. >>guest: there is no way that you can do overall tax reform between now and christmas eve. >>neil: but the hard part --. >>guest: if you have a new president and a republican controlled --. >>neil: the odds less likely if president obama is re-elected >>guest: senator schumer said and a couple of democratic leaders said "go over the cliff," put the country in another recession. why? they want to threaten america to

say you have to raise taxes. >>neil: you do not think the president, who says he wanted to look at it, the at whole budget process, more likely with your guy than the president? >>guest: he has been president if four years. he has had everything he wanted the first two years, 60 democrats in the senate, nancy pelosi in charge of the house of representatives and rather than working on jobs and economy and debt and spending he forced through a health care law that is still unpopular and unworkable. and for us as a nation it is unaffordable and adding to the problem. i wand to find a barn behalf solution and it seems like chuck schumer said this sort of thing, drop dead.

>>neil: we do know the senator is up for re-election and we reached out to his challenger, but we did not hear back from him. born and raised there, how can he win there? mitt romney closing in, in michigan. anything to do with this guy who is running michigan in the governor of michigan is next. i've been a superintendent for 30 some years at many

different park service units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved. now, i'm going to be able to have the time to explore something different. it's like another chapter.

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>>neil: in michigan, the presidential race is tightening, over the past month, governor romney closing what was a double digit gap in the state. anything to do with the man running the state? the republican michigan governor er, good to have you, i find it remarkable, because whether you agree with the entailout or not the reaction is those in your state would be very sore about mitt romney's opposition to that auto bailout but he seems to be doing okay. why is that? >>guest: well, if you think about it, the auto bailout is overblown in terms of how big an issue it is. i have said that from the start. the citizens of michigan, their concern is more and better jobs today and in the future. that is what they want to hear. the auto bailout is something that is done, over, it worked, let's move forward. when i do townhalls across michigan i don't get any questions about the auto bailout.

they want do hear about more and better jobs and governor romney has a plan. >>neil: are they thinking things would have been more rosy and now they fine out the way it was originally sold, jobs would not be lost was a taxpayer-funded bankruptcy where plants were shut down and people did lose their jobs and they still burned. >>guest: well, if you look at, i don't think there is continuing focus on the bailout as a topic. it is the only time i get a question of the bailout is from the national media. >>neil: like here. >>guest: the citizens want did hear about what you are doing do create a better environment to create jobs. the role of government is not to create jobs but to create an environment for jobs do flourish. washington is a mess. there are tax liabilities and the question of tax reform.

>>neil: i want to get to the particulars but before i do one last general thing, we have a new poll in the swing states in general, and romney does appear to be gaining ground, and whatever happened in the first debate, the impact has grown, and he has extended five points, and the particulars in michigan do not hit me right now, what do you think is going on? is this a delayed impact, or conditioned impact from the first debate or frustration with the president? what is it? >>guest: the debate made a major difference for swinging momentum adding a positive impact for governor romney and the whole campaign. the other one, there is more focus now on talking about his program. looking toward the future. the question isn't looking back in history but, really, looking forward to say, what is the solution to the serious problem jazz in washington? how do we move forward?

he is becoming more and more outspoken of the issues. >>neil: you have also tried to say i will not be unilateral about this, i want you, the voters here in my state, to go along with me to help me and make the changes. one is a proposal to amend the constitution regarding collective bargaining, with some of the interpretation to be a kinder approach from, say, wisconsin, where critics of governor walker say he rammed it down people's threats. what is this about? >>guest: an of the by organized labor to take us back in time. it talks about collective bargain. i believe in it i have done it twice with state employees, there is protection if law if collective bargaining. this could be devastating for michigan. if you step back, it could wipe up to 170 different laws passed from the time i have been in office and going back decades. if the laws are wiped off the

books you have litigation on the laws, they would go through bargaining again, and you could see huge cost increases to the taxpayers, ranging north of $1 billion a year of additional costs if the proposal was do pass. this is right as michigan is showing great success. we are the come back state in the united states today. >>neil: this is handicapping the governor to do what scott walk are did in business us? >>guest: it is more than that, it would take us backwards. i would say it is not just an effort to stop things but i have not made right to work an issue. i said it was divisive. labor is pushing forward with this proposal. i wish they did not because we are showing great progress in michigan and we cannot afford to go back. >>neil: afternoon proposal to limit new taxes by the state government, your thoughts on that and the prospects? >>guest: that is bad public

policy the way the proposal is worded about two-thirds vote to increase in rate base. that sundays appealing but to get two-thirds that leaves small minorities in charge and the great illustration is we have the dumb of the tax in the united states, in michigan, and it was a job killer. we got rid of that but replaced it with 6 percent flat net income tax for corporations. that did not pass by two-thirds so if the proposal was in place, we would continue to have job-killing tax in place by having a regular majority we could do massive tax reform and create jobs. i help people look back at that. >>neil: grover norquist might like this but you do not? >>guest: why know why anyone would like it, giving minority criminal, it really is hoping special interests to keep on doing special interest things rather than the big interest to the people. that is what the preliminary

would do. >>neil: governor always good to see you. the campaign is all about moving forward for the budget but why does the campaign look backwards? >> every president inherits challenges. few have faced so many. ink coff. design something totally original. do it again. that's good. call in the engineers. call in the car guys. call in the nerds. build a prototype. mold it. shape it. love it. give it a starting price und 16 grand. uh-oh. the finance guys. you can't do that. [ male announcer ] kick out the finance guys. take it to the track. tweak. tweak. tweak. stop. take it to the car shows. call the critics. win some awards. making a groundbreaking car -- it's that easy. ♪ wooohooo....hahaahahaha!

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i had a partner. anything she needs... just call me. [ henry ] if you're a homeowner 62 or older, call now and get your free guide and dvd. trust me, it worked for me. you'll never know unless you call. ♪ ♪ >>neil: four years later and the democrats are still blaming president obama's predecessor with a new ad voiced by morgan free man saying few presidents have inherited as man challenges as this one. is it me or is the message getting old? >> it is but though feel desperate given the circumstances, the polling that has been coming out and they hoping that hollywood can save them. this ad is called "challenges" because there are considerable challenges but they receiveed a

$1 million contribution from morgan agree -- morgan agree man. that is a money spent for what? where is the run? the bang for the buck. the news today, did you see this? this poll that is out showing that president obama is really slipping with women and that who put him over-the-top, 46 percent obama, and 51 percent to mitt romney so it looks like mr. perfect is making headway. >>neil: i wonder with morgan freeman would i love as an actor, and you recognize his voice immediately, and people could think, another hollywood guy and it could boomerang. >>guest: that is the thing. isn't it a turn off at this point? how many times can you parade morgan freeman or eva or the lovely ladies, hollywood elite,

for president obama? he is being stigmatized with the association people saying he is the president of hollywood. this is someone whose central casting picked for the role but as they saw during the debate, where is the substance? what can do you when he does not have a script? i don't think this ain't this point morgan freeman highlighting the guy having challenges, move forward, he will revitalize the middle class, the numbers, the jobs, et cetera, it is not there to support this re-election bid. so, is this money well spent? so far it does not appear to do so at all moving the polls in his favor because the association with hollywood and the power elite, and all of the elite does not make any difference. >>neil: but freeman played god. >>guest: i liked him in that role and not a voice over.

>>neil: all right, thank you. look forward to you on "the five," and hear what bob beckel has to say. the g.o.p. fund for money before the debate and the sandwich king serving up the bread. ♪ ♪ we're lucky, it's not every day you find a companion as loyal as a subaru. love. it's what makes a subaru, a subaru. anncr: every president inherits few have faced so many.

four years later... our enemies have been brought to justice. our heroes are coming home. assembly lines are humming again. there are still challenges to meet. children to educate. a middle class to rebuild. but the last thing we should do is turn back now. president obama: i'm barack obama and... i approve this message.

test bob...

oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners. if we took the nissan altima and reimagined nearly everything in it? gave it greater horsepower and best in class 38 mpg highway... advanced headlights... and zero gravity seats? yeah, that would be cool. ♪ introducing the completely reimagined nissan altima. it's our most innovative altima ever. nissan. innovation that excites. ♪

>> ohio is criewcialg crucial, , too. wisconsin is nice if you're going to lose some place else. the pivotal electoral math. not romney in 2012. i'm talking reagan in 1980. 32 years ago this very week, that was the apology, and it's true. reagan and carter were tried in -- tied in the popular vote polls but not so tight in the swing state polls. that's where carter had the advantage and reagan was frantically cobblin cobbling tor the states would have to win. funny how wrong the polls were but the poll-obsessing campaigns were. if reagan was worried at the time, he didn't seem to show it. bemused by his aides constantly shuffling state strategies, he reportedly a loo looked at their coded maps and blurted out they all look winnable to me.

they laughed, but he wasn't kidding. turned out he would have the last laugh, and they were all almost winnable to him, 44 in all. 32 years ago he didn't seem to have a chance at least lec electorally. no wonder he liked to laugh about his age. he was the only guy who remembered history. i'm not saying history repeats itself. i am saying what the experts tell you will happen almost never, ever does. don't take it from me. take it from the gipper. it is being called the most sequential economic election of our time of all reason. that's why the financial factor is at every day. tomorrow night we're live from hoswho was tra onhofstra at fox. we'll have bobby jindal, alan simpson,